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tv   Bloomberg Daybreak Asia  Bloomberg  November 14, 2021 6:00pm-8:00pm EST

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case. haidi: welcome to daybreak asia. where counting down to the market open. -- we are counting down to the market open. shery: our top stories this hour. the stakes are high as president biden and xi jinping old virtual talk -- hold virtual talks to ease tension.
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boris johnson calls it a game changer, some more and it pushes the hardest decisions into the future. key economic data from china with an eye on volatility in the bond market. we have breaking news. haidi: southwest gas naming 10 directors in an effort to do so. we have seen them threatening legal action on this front. the billionaire investor is opposing the energy plan to buy a company. he is to nominate 10 directors to replace the entire board. he holds a 4.9% stake in the company. they announced a deal to acquire a pipeline company last month.
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the stakeholder criticized the decision saying that he has been overpaying for the asset. we will continue to watch that. we are seeing that intensified battle there. trying to replace the entire board at southwest gas. let us get you up to date for the start of trading in sydney. >> we are seeing a soft start to cash trades over in sydney. after the s&p 500, we see this in asia. the australian bonds catch a bid, this is on tap. wage data does come in this week. this is in the wake of cop 26 which adds pressure on global
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players who do carbon i's. targeting net zero emissions by 2050. people wonder of this effort is enough. switching out the board, focusing on the energy space, we are taking on oil stocks, it declines in march. this is as the u.s. seeks to raise elevated gas prices. ahead of japan's third quarter data do, on the back foot, the offshore yuan in staying below 6:38. -- six. 6.38. especially as we have the i am ordering 6.2% number out last week -- haidi: especially as we have the
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eye watering 6.2% number out last week. we are seeing american families going through some real pain as result of inflationary pressures. sophie: janet yellen sticking to the chaz point rhetoric that it is caused by the pandemic, controlling covid-19 will lead to price pressures easing. this is a growing political rift for everyone including president biden, his poll numbers are slipping. haidi: after two weeks of conversations, we have something of a win. people have been managing down the expectations and saying that the reduction of coal usage is phasing down instead of out. keeping that 1.5 degrees target alive. critics are saying a lot of the
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hard work and hard commitments have been kicked down the road. sophie: climate will be a key topic here in singapore during a bloomberg economy form, the fourth one. i know you could not join us because the quarantine, but it is going to be a big one. we talk from trade -- we talk about everything from trade to finance. the growing u.s. and china divide as we head towards the virtual summit. taiwan and china's economic practices on the agenda and what is being built between president biden and xi jinping. not expected to be on the table, the biden team has tried to downplay expectations. what can we expect from this meeting? >> the fact that the meeting is
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holding place is progress. they are not planning to take part in renewables or any great agreements coming out. it is a step towards some degree of dialogue. sophie: we see potentially more recent for friction rather than chuck schumer growing the defense bill to push the stalled china built through. >> undoubtably, that is on the administration to ring -- bring this forward. it has been a high priority with schumer and the biden administration. part of it is a issue around
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chip manufacturing. the biden administration priority, may want to settle. it is attached to the defense policy. it is likely to get bipartisan support. >> we are looking ahead to when it comes to the eco-front in china as well. it could pose new headwinds for the on avon global recovery -- for the uneven mobile recovery. what is the data on the economic domestic indicators? the pace of the slowdown? >> we have three main reasons on
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the retail side of things, we are expecting some hints that the consumer recovery did pick up a little bit in october due to the national holiday. overall, down on consumption. it shows a hit from the slowdown into the state sector. on the industrial production side of things, we may see pickup because of the improvement in the energy crunch in china. electricity is going back online for those factories. the overall takeaway will be confirming an ongoing self patch for china's economy. we are not expecting a major turnaround. slowdown is coming at a pace that is catching analysts offguard. they are expecting a hit growth of around 8%, it might mean china's economy could have 5%
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growth next year. there are consequences as to what that means. how does china slowdown, these are the kinds of questions people are asking. this is a turnaround from the start of the year. it is ending on a fizzle. haidi: goldman sachs expecting growth of 4.8% into which of the two -- into the end of 2022. >> everybody is watching the property sector. that is where there is a threat at the moment. 25% of activity, depending on how you want to calculate it. that chinese press says there might be easing of curbs on the property sector. to get mortgages flowing again, to take the pressure off. that would be seen as an important signal. people are seeing some
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resilience in the exports side of things, they are saying the consumer story. the real weakness is there. on the real estate side of things. that would hit a bottom. i do not think anybody is expecting rod based -- broad based reform. that govern remains focused on what lever they pulled in real estate. haidi: bloomberg users can get more by going to tillett -- t livgo. we have goldman sachs joining us in the next hour. let us get to the first word headlines. >> china's covid czar is
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confirming to the country's covid zero strategy. adding that the measures have not hindered the economy. they latest outbreak is in a city where tens of thousands of university students are under lockdown on their campuses. treasury secretary janet yellen says that controlling covid-19 is the key to easing inflation. speaking on the morning news program cbs face the nation, she said it is important to understand that the current because of inflation is the pandemic. she expects inflation to decline by the second half of 2022, with prices returning to normal when labor and supply patterns normalize. morgan stanley is sticking with their prediction that the fed will not raise rates until 2023.
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breaking ranks with the ceo. the bank's economists say the fed will stay the same until the middle of next year. that stands contradictory the call for the fed to start moving quarter. global news 24 hours a day, on-air and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. >> this is bloomberg. >> winnie chu tells us why she does not see this is returning to pre-pandemic levels. we get some insight on the mixed move in the fed -- mixed moves in the fed. this is bloomberg. ♪
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>> chinese sovereign bonds, one traders are focusing on the production data. looking to see whether that could give the monetary policy stimulus. let us bring in the ceo of rainer investors. dampening expectations with policy support. we know china is going through slower growth than the u.s.. what would you be looking at in terms of a push? >> we wouldn't expect a lot in the near term. he would not want to see the -- the chinese would want to see more in the way of wave making. there are issues, huge amount of
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high-yield bonds were issued in mainland china without the underpinning of a system of records. to allow those things to be resolved. we would expect there to be a bit of a glide path until that is a family -- is established. >> evegrande seems to be playing out a slow-motion crisis. has the downside been priced in already? >> it is hard to tell. you have no precedent for it. you're talking about a total of $3 billion a month in one issuer where there were a tremendous number of creditors beyond the bonds. the vendors, and employees there. the government cares a lot more about the other non-bond
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creditors or stakeholders in a way that it would not be the case in other markets. you have no idea, there is no way to cough it, -- cuff it. >> any opportunities outside of china when it comes to distressed properties? >> we are operating throughout the asian pacific a combination of distressed and special real estate transactions throughout asia, particularly in korea, a little bit in india. a variety of late stage situations in southeast asia. >> how are you playing in this whole narrative of the inflation search with commodity prices surging? >> the reality is -- the the transition from death
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original sources of energy into -- from original sources of energy into new sources. we are looking at ev infrastructure and growth areas where we can support the transition of energy. we are open to more traditional methods. you will see us operating throughout the u.s. in europe, and asian-pacific. as well as in coal. particularly how those intersect in asia with trade finance. >> always rate having you, thank you. -- great having you, thank you. apollo global management is cashing in on the market frenzy and set ambitious targets for further growth. the ceo joins us later.
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this is bloomberg. ♪
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>> we are tracking the father of the global supply chain crunch -- we are tracking the global supply chain crunch. -- the impact on prices is already playing out with soft commodities surging this year. this has taken a toll on some -- food supply in developing nations. bloomberg reported that the biden administration has rejected a plan by intel to increase production in china over security concerns. the supply constraints are among the top issues at the dubai air
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show. airbus has secured a mega order for 255 new marrow -- narrowbody jets. >> the plane maker winning the battle of the skies against boeing. struggling to get it streamliner and 737 max models back in the air. bloomberg terminal subscribers can read more about those stories in our newsletter. >> supply lines on and i trade -- ni trade on your terminal. >> the sidelines of the dubai airshow, the triple seven and the 37 max. >> we have the 777x decertification. it is here today, flying.
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we met with tim today to talk about the status of the program. those are private discussions. we have confidence in what we are doing moving forward we would -- will deliver a high-quality product. we assured him we will be on that path. we will decide what the bright national delivery timing is for him. >> in terms of the inflationary pressures that the world is facing, how is boeing dealing with that? what are you seeing across supply chains? >> supply chain will be critical for us in the recovery. our major focus is continuing to gradually ramp up on the 737 max. we see human capital is one of the constraints. we have been working deeply with our supply chain. we will do so as we ramp up.
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the number one issue is bringing the workforce back in, getting them productive on the products. so that we can focus on the high-quality output. in return, the liver with confidence to our customers. >> are you confident you can hand over the costs to consumers? >> we are our pricing with our customers. that is fixed. we will continue to are productivity in our factories to offset any inflationary costs. the market determines price ultimately. there is a great, fierce competition between boeing and airbus is what makes this market so good. we compete hard to win. >> there seems to be movement when it comes to the 737 china. maybe some of the purchases can
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get up to speed? >> last week was a positive sign to post the directives for public comment. we take that as an encouraging sign. it is up to then to say -- them to say when. we put up technical information for the evaluation to allow them to fly the airplane's, to allow them to be on the simulator. to allow them to evaluate private training. we are checking the boxes, it is up to the cac to determine the time. >> let us get a quick check at the latest business headlines. travel recovers which could affect delivery schedules and order numbers. the carrier is to held talks about delays of the 777x jet and accelerate the airbus 350 and instead.
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>> what is happened with the delay, we are seeing a demand by significant percentages. we are running at about 50%, maybe a bit more, it is growing every day. the cargo is strong and has been since we started. it is a good story at the moment. we are looking for the next 4-5 months. >> a company is looking to buy a real estate investment trust. according to bloomberg sources, the company could announce the deal soon. the deal comes among heavy consolidation in data centers which provides infrastructure for cloud computing. investors warn that costs will
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climb this quarter because of chip shortages. the income came in at $1.3 billion. the shortest>> we are counting e start of trading. here are some stories. in japan, investors eyeing the latest gdp numbers with economists forecasting a contraction angst to the extended state of emergency in weaker -- weaker exports. toshiba spending -- splitting into three different companies to improve shareholder value. lender profit forecast missed estimates at the open. we are watching korean air. it posted its highest profit since 2016. samsung will be close to picking the site for its newest u.s. chip plant.
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we have plenty to come on daybreak: asia. this is bloomberg. so many people are overweight now, and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat all while controlling stress and emotional eating. at last, a diet pill that actually works. go t- [announcer] imaginers. having fuller, thicker, more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color
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i'm su keenan with the first word headlines. we dealt with president joe biden and xi jinping said to hold a virtual summit monday. the talks come among heightened tensions over issues such as taiwan and trade. the discussion is designed to prevent misunderstanding that could lead the u.s. and china to a military conflict. find it and xi jinping asked biden and xi jinping have spoken on the phone twice this year. this is the first time the
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conversation is being billed as a summit. senate majority leader chuck schumer could be set to fast-track a bill aimed at competing with china by attaching it to a must pass defense bill this week. the bill would boost domestic semiconductor manufacturing with $62 billion and authorize another $190 billion to research and development. the china bill passed the senate in june but is being held up in the house. china launches the beijing stock exchange intended as a platform for small and medium-sized companies that face difficulties raising capital. about 70 companies will migrate from the existing chinese fours and an additional 10 will debut for the first time. global news on air and on
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bloombergquint take is powered by more than 2700 journalists and analysts in or than 120 countries. i am su keenan and this is bloomberg. >> more ambitious and somewhat expected. last-minute objections from china and india. the details. >> after two weeks, some long nights, and long negotiations, the cop 26, the biggest climate conference in the world, has come to an end and we have a deal. there are a number of things to point out. it keeps the 1.5 degrees celsius temperature check alive, this was a top priority for the u.k. government. it also sees a breakthrough on call for the first time. explicit language that calls for the breakdown of coal and other inefficient fossil fuels. the reason i say water down is an earlier version called for much stronger language. nevertheless, the complement --
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compromised version ended up. the establishment for an internationally recognized carbon market is something scientists have called on for years in order to eliminate carbon. you have to be able to measure it and it traded properly, particularly, when you look at carbon credit in the overall market. this is, of course, on paper. the question is, how do we turn this to a reality? there are big questions around in the implication. for activists, this is yet more blah blah blah. the real fight continues on the street with real people and time is of the evidence. in glasgow, maria tadeo. shery: more on the agreement with allie is already. -- allie is already. what stood out for you? holly: that's ali -- ali: the
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fact that it is the first time we saw: fossil fuel explicitly called out it's a really good sign. the fact that there was this commitment to phase down emitted coal power as well as phaseout fossil fuel subsidies is really important. it is progress specifically for carbon trading. the fact that they managed to actually get agreements is a really good sign. >> when it comes to this part of the world, who do we see as the biggest positive contributors in asia? who are the laggards? >> from the beginning, even before the summit began, new zealand played a very constructive role. just on the eve of the summit when the 22 statement came out.
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around the same time, new zealand came out with a more ambitious goal for 2030. throughout the summit, all of the really progressive new issues, new zealand was the only aipac country signed all of them. in terms of the laggards, there are a lot of concerns around the roles india and china played in dilating the final plan. -- diluting the final plan. india made a commitment towards achieving a zero in 2070. that should still be welcome. coal power is a significant source of emissions for these two countries. the fact that they are willing to phaseout is a good line. >>ali izadi joining us with reaction.
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let's look at the market reaction. some of the coal players. what will be on your radar? >> we are watching renewables in fossil fuel plays. the government did not change its 2030 emissions plan. last week bhp climate plan was approved by shareholders. whitehaven coal is gaining ground. coal stocks are in focus. this was a cop 26 agreement to phase down use of that fuel. we are keeping an eye on oil search and santos this morning. the oil search sagas under pressure this morning. for a check on banking shares, let's hear from the industry watchdog this morning morning -- monday morning. minimum bank capital requirements are to be lifted. we are seeing pressure on stocks. overall, financials are the laggard on the 200 that is
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otherwise gaining ground. switching out the board ahead of the japan gdp report, the set up for singapore gaining ground. it is above the 114 handle for the moment. this as we are seeing jgb futures a big change ahead of the stimulus package. shery: we will continue to watch the markets. that includes tesla. elon musk is back at it. the tesla founder sparring with u.s. senator bernie sanders on twitter raising the idea of selling more shares which would require him to pay t gains. muddy waters capital ceo carson block says he used to be negative on musk because of exchanges like that. but, that is now changing. he told bloomberg it is important to look at the founders behind the firms when it comes to tech plays. carson: i used to be very
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negative on him. as a person, i am in the sense that he lies a lot. please, do not push back on that. we could get into examples. people say, if that were true, they would have sold the stocks. it's like, no. what are the good things about elon? he built the car. he built a rocket. that is something that i think a lot of these managements are not going to do. like lordstown motors, all right? i mean, at least today to people initially with the company when it ipo, i think several of them are gone. they were pretenders. we shorted a company earlier this year called xl fleet, a
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vehicle electrification space. so, we play, i like to say when we do something like this, when we are looking at these next-generation green tech or whatever hot technology it is, we plays a man not the ball. playing the ball would be the technology. does it work? let me get my scientists out here. our scientists arguing publicly with the company scientists, our scientists will always lose in the minds of the long-haulers. but if you play the person, ok. b what is this person's background? what are some of the egregious things that have said? that are really core to the thesis? that if we scratch the surface, oh my gosh. these are not true. or, these are massive exaggerations. so, if we see exaggerations and misdirection analyze that are
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significant in ash and lies that are sick -- and lies that are significant enough, we say, ok, this is not elon musk. that is a guy that delivers. that is basically the same kind of guy who has existed since popcorn markets existed. a promoter that sells a dream that ultimately has no substance. that is how we play it. this does offer opportunities for us to do it, but, it is pretty crazy when you look at like michelob in lordstown. they still have a massive market cap. that goes to this phenomenon. every now and then i joke that 700 million is the new zero. you could even say that something in the millions is the new zero. there are all these companies that are really valueless that have real cap. shery: muddy waters capital ceo carson block.
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in our generation next segment, we hear from sources hospitality's international about operating a hotel in hong kong and the chains global expansion plans during a pandemic.
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haidi: the conglomerate was founded by chiu's grandfather and has properties across asia and europe and is opening properties in line with changing customer trends. dorset hotels has been in high demand as they are among those approved for hong kong's strict mandatory quarantine for incoming travelers. she spoke about navigating the pandemic and plans for the future. winnie: being a quarantine is hotel -- 14 hotel is about the community. thankfully, our numbers, are, of course, not the pre-pandemic level, but we are not far off,. it is different cities to cities, but we are not far off. >> the company is doing better
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than others but when it comes to revenue and profits, it is still falling compared to pre-pandemic levels. what is your view on the passive recovery now for dorsett in your portfolio of hotels? winnie: because the cost has gone up with health and hygiene standards and we are using a lot of medical equipment and also, the air system. it is not cheap doing a quarantine hotel. definitely, our revenue and the occupancy is not the same as before. in terms of recovery, again, in its country it is very different. so, we have opened a hotel during covid in australia. that is the ritz-carlton. we are lucky with that hotel. people like australia it is very much domestic travel -- places like australia it is very much domestic travel. we have good occupancy, 60%,
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70%, 80%. this is a very good question. in each city and country it is a little different. even like japan, we have open three hotels during the pandemic. we have opened two hotels in kyoto and one i get ginza. -- in ginza. they are doing ok because of domestic travel and boosters form -- from the government. in japan, the government gives you allowances to travel. >> it differs market to market, but when do you expect things that does things to go back to pre-pandemic levels? death -- things to go back to pre-pandemic levels? winnie: at least another year. i think that consumer behavior will change. it is a very, big, impactful. covid is huge in terms of all industries and consumer behavior.
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if you look at surveys, global statistics, people are traveling. but their length of stay is longer. in december, we are launching our first long stay service by dorsett in london. >> >> walk us through the future of travel. what are some trends you see that are short-term and what do you see that is more permanent? winnie: if you look at surveys, people, 40% have an urge to travel at the moment. it is really visiting family and friends. under the last two years, that has been put at a standstill. in terms of the recovery, we are seeing people traveling, staying a bit longer to visit family, things like that. i think this will neutralize. once we are more out of the pandemic situation. the pandemic has definitely accelerated people's investment in technology. as a group, for ourselves, we
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are definitely investing in much more contactless things, contactless lift, contactless check in. things like that. people will be more concerned about air quality. all of this. i think it is very important that we embrace it as a company. >> what are you seeing in your different portfolio hotels? whether it is australia, europe? are things coming back in a bigger way than you expected? winnie: definitely in europe we are seeing a lot of u.k. and europe that the numbers are really going up. we can see the pace of what we always look at is the pace of booking. that has come back quite strong. australia and japan, because of the domestic travel and they are no longer in lockdown, so, you can see much more stake asian coming forward. china has been on a growth since one year ago. it has resumed to normal. >> what is the group's plan for
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further expansion? winnie: we are a city strategy company so we like to have hotels in cities we are already in. so, in the u.k., london. we are looking at manchester. in australia, where we already have our presence, we are opening gold coast, boxing day, we will be opening gold coast. we are open in paris. we will open in brisbane and cindy as well -- sidney as well. >> what is the transformation you want to see? you have been in business for 70 years. what is the vision for the third-generation moving forward? winnie: next year is our 50 year being listed in the hong kong stock exchange. that is a milestone for us. in terms of transformation, we want to go -- grow with the city we are in. since my grandfather's time, we have always been quite global.
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so, it is actually most enjoyable because we have always been kind of in entertainment and consumer relations. so, during my grandfather's time we were in cinemas. we are also in theme parks. tv stations. different entertainment. we are in property development now is what is hotel. so -- as well as hotel. in different generations we have always been close to the customers. the most important is that we always need to think we are together growing with the customer. we always like to do, even with hotels, we like to do more kind of middle-class products. >> i am looking at the next five to 10 years. what is the vision there? at the end of the day, when you look back at your work in the family business, what legacy do you want to leave behind? winnie: i always believed we
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must as a business continually grow. since i started in 2010, we were at 11 hotels. now, we are at 64 hotels. definitely, we would want to grow our portfolio more in terms of product, we have our four star dorsettt. we have a three star. we do hope that we will expand our global footprint. in terms of legacy, i want to leave behind. that is really making a difference. hopefully, also influencing more . to make a difference for our future generations. shery: breaking news out of japan. the third preliminary gdp numbers. it is a construction of 3%. annualized quarter on quarter. we are talking about a much bigger expected contraction, white 7% -- .7% is what analysts forecasted.
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a 3% contraction porter on porter when the previous quarter was a gain of 1.9%. in fact, the second-quarter numbers being revised downwards to growth of 1.5%. when it comes to the nominal quarter on quarter, the contraction of .6%, bigger than expected. quarter on quarter headline number, a contraction of .8%. again, much larger than what was estimated. business spending also is not looking great in the third quarter. a contraction of 3.8% quarter on quarter. that is much larger than expected. not surprising given that we have seen this volatility with the extended state of emergency. weaker expert said -- and as well. although, bloomberg economics point that we may -- might get more stimulus coming later in the week. again, the numbers are looking pretty much weaker than what we were expecting. haidi: much weaker than
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expected. on the upside, given that most of these fibrous codes have been lifted we can see something of a rebound in the next quarter. certainly, the slowdown in china and ongoing supply chain issues could bode ill when it comes to the demand side. let's look at the reaction when it comes to the yen. this is what the yen is doing at the moment. kind of moderating that earlier move we are seeing it holding pretty steady at one pointing -- 114. just over 114. the yen is expected to see limited downside. it has been trading really steadily. investors are looking ahead to u.s. data and comments from the fed and expectations when it comes to inflation as moves in the oil market to drive the move in the yen. we will be getting more inside top of that. but, in terms of the -- insight off of that. but in times of gdp numbers, they were even more disappointing than expected.be g
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radio and you can hear from -- more from today's big news breakers -- newsmakers. listen in via the app store on bloombergradio.com. there is lots more ahead on daybreak: asia. this is bloomberg.
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>> the latest business flash headlines. air bonds received a mega order for 250 five narrowbody jets that will be distributed to wins their frontier group and other low-cost airlines. the deal is valued at over $30 billion before typical industry discounts. airbus is trying to prepare for higher demands beyond pre-cobit levels. but, orders have remained flat this year. boeing is optimistic about the resuming chinese orders and deliveries warrants 737 max after the regulator signals it is close to clearing the jet for flying. the jet makers had of commercial airplanes said he is looking forward to having the max back. >> we are hopeful we can do that soon. we have seen some orders on freighters that have come through. we are just encouraged. shery: we are watching toshiba
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in tokyo after it is splitting an -- into three separate companies as part of an effort to improve shareholder value. core operations will be separated into two new publicly traded companies, one for infrastructure services and another for technology devices. the remaining toshiba business will hold stakes in pioneer key osha holdings and toshiba tech. haidi: we have a big outlook -- interview on the outlook for m&a. apollo global caching in. mark rowen joins us later. plus, we preview china's monthly activity data due out later today. the chief economist andrew stilton will be sharing his views. this is bloomberg.
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shery: welcome today daybreak asia i am shery ahn in singapore for the bloomberg u.s. economy form. haidi: i am haidi said what's in sydney. our top stories are asian stocks said for a steady start. economic data from china with an eye on volatility in the bond market. the stakes are high as president
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biden is set for talks designed to ease tension. the call 26 climate deal. let's get to use that you to the start of trading in tokyo and seoul. sophie: we are seeing the nikkei 225 adding that edging higher -- edging higher. we are seeing steele and jay holdings under pressure so far. we have the 114 handle this morning. we do have a jgb under pressure. we are keeping an eye on names like lg chem. renewables undid him nine -- under the limelight -- in the limelight.
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we have the cost of space this morning. the cause tax hitting seven tens of 1%. the 11 81 handle against the dollar this morning. turning to austria switching on the board. how we are faring in the sydney session. stocks let higher by health care and discretion names. banks are under pressure in sydney. with the aussie dollar, a little change. when we get november meeting minutes from the central bank. check out offshore you and holdings. we count down to monthly activity figures from china this monday. we are keeping an eye on an oil patch this morning, go ti above 81 and brent higher by 2/10 of a percent. this as there is more pressure on the west to release emergency
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stockpiles to manage elevated energy prices. shery: exits by private equity firms in the u.s.. global management returned more than $8 billion to investors with a friendly dealmaking environment helping to drive asset sales. the firm owning to double the size of its asia-pacific team to tap a growing need for specialist hybrid financing. joining us in singapore is cofounder and ceo mark rowan. it is great to have you with us. mark: good morning. shery: let me get started with something simple. how big a chunk of your asia business -- is your asia business out of your overall performance? mark: asia is 402,000 people. that is a pretty significant team. we have just appointed one of our rising stars, matt miller cleaning, who will lead our business. he is excited to be in singapore
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with me this week. in terms of assets, it is not a large portion of what we currently have. it is between 5 billion and 10 billion. what you have seen over the past few months is us begin to make the kind of inroads we hope to, particularly with retirement services and to deals where we took a stake in challenger in australia and the fwd in hong kong. shery: what is the potential of this market for you? marc: this is a very large market. the business alternative -- of alternatives is a large business. historically, we have talked about private equity. our strategy is coming here is yes, we will deprive act woody -- do private equity. but the lions share of what we anticipate out of asia is on a yield, hybrid, and retirement services. shery: you are seeing a lot of opportunities in japan. what are you offering?
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marc: japan is a good retirement services popular -- population. it is an overpopulation. it has 10 years of relatively low yields. we are already a reinsurance partner through retirement services is this is through a number of japanese institutions. i expect we will spend a lot of time in japan. shery: what about across the border to the mainland? what opportunities do you see there, particularly, as we see this dislocation with the property sector and other regulatory crackdowns? marc: we historically have not been a huge source of capital directly in the china. on equities, we have felt troops are better positioned and established. we have picked spots in hybrid annual businesses. i expect that to continue. i do not see china as the major
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opportunity for our asia business. no doubt, what is happening in china -- shery: does that mean you're not? marc: no doubt, what is happening across china is influencing opportunities across asia more broadly but in china and the market is very well served. shery: does not mean you will not be hiring or you are not currently hiring in that space? marc: we do not have an on the ground presence in china. the largest portion of our asian business is. -- is india. the other significant offices are hong kong, singapore, and sydney. shery: why don't you see opportunity in china? marc: it is not a question of opportunity, it is a question of what we do. there is a lot of opportunity in china, but our business is an equity business. we want high returns. think of private equity.
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our business is a partner business. the largest business we are in is a yield business. we have so much in front of us outside of china that there has not been a pressing need for us to try market that is not all that yield oriented and where there is a tremendous amount of competition. now, in our portfolio, everyone of our portfolio companies is incredibly active in china. so, indirectly, we are a big to spend in the chinese market. but, in terms of equity investment, that is not a large portion of our business. shery: we talked about japan. where else do you see yourself growing in asia, given you have already said you want to double your asia-pacific team of the next five years? marc: every market in asia is in its own state. australia is a different set of opportunity. as is china, as is the philippines, as is hong kong. the primary attractiveness as i see it is for us to enter through our hybrid business, i
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partner with equity and nonequity capital and through retirement services and yield. as of the population ages and people are looking for retirement income, that is where we play a primary role. initially, we are doing it with -- as partners with other insurers. we will also build a significant global wealth business that investors can access our products and services directly. shery: that is what i wanted to ask in term of the long-term goal in the long game as to what apollo looks like. in your investment presentation you made a lot of waves as to existentially what you guys look like five or 10 years from now. is it something that looks more like berkshire hathaway? marc: that would be the wrong way of thinking about the business. the promise of our business is excess return per unit of risk. but if you really thing about what we do, we were -- provide returns to retirees indirectly
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through pension funds, endowments, and wealth funds. add, directly through investors who access our products through our retirement services business or otherwise. look at business today. it is roughly 150 billion of equity in hybrid and 350 billion of yield. as i have said going forward, the business i expect to double will be our yield business. even at 300 50 billion today we are a relatively small participant in a vast market. so, there is plenty of room for us to grow in that business. and, we have seizedd on the notion of origination as a way of earning safe excess return that is appropriate for institutions and appropriate for retirees. yes, our equity in hybrid businesses will grow. they will not grow at the same scale that the credit business, the yield business, will grow at. shery: you mentioned wealth management as well growing in asia. it is hard for me to believe china does not offer that opportunity as well.
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you are already partnering with japanese banks and brokerages. what is the dynamic here? marc: the dynamic is a question of directly versus indirectly. there is a broader trend in the world that we sometimes say is democratization of finance. the most sophisticated institutions in the world have always had access to the most talented wealth managers. but if you are a high net worth individual, much less a normal individual, you really did not have access to the products and services of our industry other than through fees and inconvenient structures. what has happened over the past 20 years in our industry as it has matured. the regulatory scheme has matured. technology has matured. frankly, the investors have matured. so, the ability of investors to now access the alternatives industry directly or through their existing wealth managers, because, we are partners with lots of existing wealth managers, i see is one of the
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big growth areas of alternatives. it is about 5% of our business today. i expected to be about 30% of our business over the next five or six years. shery: you mentioned technology. of course, private markets are harder to automate. as you have notable before in stocks and bonds. how is this change we have seen during the pandemic going to impact apollo from the macro side of things when it comes to technology and fintech and so forth? marc: look, fintech is taking place everywhere in the financial services industry. it does not matter if you are a recordkeeper, a depository, a bank, a broker, a originator, there is a technology competitor at every point in the value chain. for us and our industry, i think it is mostly about offense. we are natural partners to challengers. we offer large balance sheet back up. we are a validator of new technologies. most recently, we agreed to move
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a chunk of our securitization business onto figure technologies blockchain, providing them an important launch customer while giving us better information, better economics, and better control of cost. third, we are a massive customer. we are a big user of financial technology products. we are fast-moving. all of those things are offense. on defense, the ability of customers to now look at in real-time what we do and unbundle our products and services is also advancing. technology has really started to reshape, particularly, our relationship with retail. shery: so great to have you with us. marc rowan apollo ceo. we expect data from china. goldman sachs andrew tilton
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joins us for a preview. up next, the stakes are high as president biden and xi jinping europe for their third official virtual summit. we will look at what is on the agenda. you don't want to miss our fourth annual bloomberg new economy form through the course of the week. we will be having face-to-face discussions among world leaders on topics from finance, trade, and climate for cities and public health.
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su keenan --shery: -- su: japan's economy shrunk by an animal lysed 3% in the last quarter, contracting faster than forecasted.
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that gives the new prime minister additional justification for a stimulus measures to get the economy back on a path to recovery. according to nikkei, the fiscal measures will shrink the economy in five of the past eight quarters. to china,. affirming the country's adherence to its covid zero strategy. the official call is the most efficient way to protect china's people, adamant measures have not hindered the economy. china's latest outbreak has tens of thousands of university students under lockdown on their campus. the country gets a new borscht later with the launch of the new beijing stock exchange for a small and medium-size companies that have faced difficulty raising capital. about 70 companies will migrate
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from an existing chinese board an additional 10 will debut for the first time. the news, 24 hours a day on air and on bloomberg take powered by more than 2700 journalists in analyst -- and analysts in over 120 countries. i am su keenan and this is bloomberg. shery: president biden and xi jinping will meet monday in what is being dubbed a virtual summit to prevent misunderstandings between china and the united states at a time of strained relations. for more, our chief north asian correspondent stephen engle in hong kong. the biden team has been trying to downplay negotiations. what do we expect out of the talks? steve: under promise and over deliver. because, there is no real president now between biden and xi jinping. they have had two phone calls button on meta-face-to-face virtually like they will later monday in washington early tuesday morning beijing time.
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essentially, the white house has expressed frustration that lower-level talks such as the ones that really kicked this re-engagement off in anchorage really did not produce a lot of results. in fact, the anchorage meeting was more of an airing of grievances. now, we know biden has wanted to have face-to-face meetings with xi jinping but xi jinping has not left china in more than 600 days. so, they have come to this compromise, if you will. they will have a virtual talk. there are a lot of grievances to get through. biden things that the presidential level talks could help blow through some logjams we have in relations. they are prickly issues. front and center on the geopolitical front is taiwan. there have been a lot of barbs traded back and forth about voicing support from taiwan from the u.s.. of course, taiwan's issue of independence is one of those red lines geopolitically for xi jinping.
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so, the bar is low for deliverables. but again, the fact that these two will be having face-to-face virtual talks is a good sign. haidi: speaking of logjams, chuck schumer really wants to break that when it comes to his long languishing china bill, right? are there better prospects you will get that through? stephen: there are better prospects as we get closer to the end of the year and there is lots of push to get the spending packages passed by the end of the year. but, the china bill has broad bipartisan support in the senate when it was passed in june. it has languished. talk about logjams. the logjam has been in the house. so, chuck schumer has been saying that, perhaps, we need to combine our efforts with the annual pentagon spending bill. that measure, yearly, has to be passed. it has garnered broad bipartisan
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support. so, the thinking is that they can combine the two, the china bill, 52 billion that will help competitiveness for semiconductors plus another 100 $90 billion for universities and other institutions to fend off and counter -- 190 billion dollars for universities and other institutions to fend off china's spending in r&d. haidi: a top diplomat in beijing calling on the world to engage with the taliban saying the country's isolation is worsening the humanitarian crisis. also called on china to lift trade barriers, saying expanded trade would do more to ease the crisis. >> the biggest problem at this point is still, the international community does not know how to deal with the taliban. so, there is a pledge.
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but, they are trying to find out the system. they could use the united nations system. but, at the end of the day, we have to realize that somebody likes it or don't like it, this is a reality on the ground. the taliban ours ir. -- are there. they have a piece of land where 35 million people are living in we have to find a way to reach the people. and get them out of this dire situation. we need assistance. people need assistance. they need it soon. >> can you tell us more about what china has said it will do in terms of pledges? what is the reality on the ground in terms of chinese contribution to the humanitarian crisis? javid: china already pledged and donated some. one month, two months ago, there was a meeting between the chinese foreign minister in the taliban foreign minister. they pledged $100 million which they donated already.
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before that, they pledged enter equipments and blankets and all of that and delivered that too. other than that, i think china was not a big part of the humanitarian assistance because china believes more in trade. >> i want to switch to the finite quarter. i know that has been reopened recently. can you explain what people who might not be familiar with this, what is the corridor and how important is it between china and afghanistan. >> this is what we really expect from china. because china is a very good argot and big market, we expect trade. china is one big flagship of that. it is important for two reasons. one, the pine nuts have enough
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capacity to generate income for the people on the ground scale. second, our pinenuts, before this air corridor, we had to sell it from india then it was reexported. now, it happens directly from afghanistan to china. the amount of money that was lost in between the trade, that will go directly to afghanistan. >> that would make a big difference? javid: definitely. it is not a lot of money, but in a situation where nobody has anything, it is. the potential to grow is a lot there. we cannot bring everything here. the air corridor is not easy. but, it could easily go up to 2 billion or something. that would make a big difference. colum: are there talks to expand this to other products and how are they going? javid: we discussed only saffron, which is only near now -- very near now, proper form of
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signing off, in a week or two, hopefully, we will have a formal signing of that too and that will be coming. so, other things in the pipeline were pomegranates. but, i don't think this year that could happen. colum: can you tell us about you that's how you see china's role in the international diplomatic efforts to address the afghanistan issue? javid: china is playing a constructive role. by keeping engaged with the taliban. this, i think, is good. we really have to in the international community, we cannot shut the door. in that sense, china is still engage. it is one of the countries. at the end of the day, the afghanistan issue is regional but also international. i think you need all of these
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big -- we need all of these big companies -- countries to be on the same page and go forward. shery: the afghan ambassador to china javid qaem speaking with bloomberg's colum murphy in beijing. don't miss the new economic forum. coming up next, a look at the asia eco-week including a china data dump and japan's gdp. goldman sachs chief economist andrew tilson joins us to discuss. -- tilton joins us to discuss. this is bloomberg.
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♪ >> don't miss the fourth annual bloomberg new economy forum
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su: this is "daybreak: asia." i am su keenan with the first word headlines. presidents joe biden and xi jinping are going to hold talks over issues such as taiwan and trade. according to the white house, the discussion is designed to prevent a misunderstanding that could lead the u.s. and china into a military conflict. biden and xi have spoken on the phone twice this year, but this is the first time the conversation is being billed as a summit.
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u.s. senate majority leader chuck schumer could be set to fast-track a $250 billion bill aimed at competing with china by attaching it to a mast-pass offense bill this week. it will boost domestic semiconductor manufacturing, with $52 billion in assistance, and also authorize another $190 billion in research and development it. passed the senate in june, but it is being held up in the house. morgan stanley economists are sticking with their prediction that the fed will not raise rates until 2023, breaking ranks with the ceo, james gorman. the bank's economists say they expect the fund to finish asset purchases next year, saying labor participation -- which contradicts gorman's prediction. global news, 24 hours a day, on air and on bloomberg quicktake,
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powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. >> let's turn to sophie: for what to watch. sophie: the aipac index is set for a third day of gains, led higher by the kospi this morning but of the 3000 level. among the big gainers, i want to highlight this company jumping after it received approval to market a covid-19 treatment in europe. in australia, health care is leading the asx 200 higher by 0.4%. the bhp is slightly under pressure after the cop26 outcome. the government coming under fire for not tweaking the 2013 emissions targets. in japan we are seeing some reaction to the japan gdp data, which showed consumption coming in even weaker than anticipated. fast retailing is under pressure
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but. cheap related names are helping to lift the nikkei higher. the impact of covid curbs is showing up in the broad earnings in asia. pulling up a chart on the terminal with that. after a lackluster third quarter reporting season for the region, we have seen earnings revisions slip in asia. pulling up a chart to show you the picture here. . this is compared to what is going on in the u.s. where we are seeing earnings forecasts come through for american companies. when it comes to china, that has been a big drag on asia earnings performance. over at morgan stanley and goldman, they see downgrades for chinese firms, given the impact from energy shortages and also covid. haidi: as china's economy continues to weaken with little signs of bottoming out we have key data do out in the next 90 minutes that will be watched for the slowdown. if it is serious enough for the authorities to step up economic
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support. let's speak to the chief economist at goldman sachs. it is all trending lower. not terrible, but no indications of a meaningful pickup. do you see any catalyst that could drive any of these indicators, in particular, private consumption and consumer sentiment higher in the months to come? >> a key thing in the consumption would be the covid restrictions and how the virus is a managed. we have another outbreak currently spreading to a number of other city districts, but it doesn't look as bad as we saw in july and august. we think we could see a small upside surprise in the retail sales numbers today, but broadly, you need to have very good control of covid and low-level restrictions for a prolonged period to see a stronger rebound in consumption. haidi: the other piece when it
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comes to consumption may be the longer-term. are you worried about the wealth effects depending on what happens to the property sector? >> certainly, the property sector has been the key store of wealth and value for many chinese households, and we're seeing a meaningful decline in sales activity and, to some extent, prices. that is going to weigh on activity in october and the quarter. we do worry about spillover effects from the property sector . the wealth effect, as you mentioned, is one of those, although in our view, the bigger ones is the effects in upstream industries, the fiscal effects, because many governments have significant revenue coming from land sales. therefore, weaker land sales activity will constrain their ability to implement fiscal spending and infrastructure projects and so forth. wealth effects is a piece of it, but it is only a piece of the larger impact of the property
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and chinese economy. shery: what about a spillover to the rest of the region from china's feeding rebound? andrew: there were a bit less concern, simply because the property is the big sector. 90% of the value-added in property -- in in china's property sector is coming from within china as opposed to things like imported materials that are used in property construction. while there will be some spillovers in the commodity space in volume and prices, and we have seen some of that this year in terms of iron ore, we don't see the property as changing the picture for most economies in the region -- the property sector slow down as changing the picture for most economies in the region. if we saw weakness in sectors beyond property, that would have a much greater likelihood of spilling over into the rest of the region. shery: how much will that
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slowdown in china hurt economies like japan, where we are already seeing third-quarter numbers today really disappointing to the downside? andrew: we have had a tough third-quarter. a string of weekly reports across the region. i put the first and foremost, the delta wave of covid and the restrictions associated with that as the biggest driver of that deaconess. certainly, there have been other aspects, spillovers in the supply chains. for example, semiconductor shortages which have really hit auto production including in japan. that has played a role. but the biggest factor in our view has in the covid restrictions, the reduction in consumption that caused in q3 in a lot of asean economies. but as we saw this morning in japan. as we look out in q4 and q1, we are optimistic that we will see a rebound in a lot of these countries that have been more
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restrictive, later to reopen. particularly the asean economies. we think they can outperform in the next few quarters. they have further to rebound given the level of restrictions they have been under until recently. haidi: treasury secretary allen says a key to quashing inflation or getting it down to normal is watching covid-19, in terms of stabilizing labor markets and demand as well as supply side wrinkles being ironed out. do you agree with that for asia as well, and how long does that take, how long do the disruptions that have been created take to be ironed out? andrew: it is tricky. in asia, we have not seen broadly the acceleration of inflation that we have seen in other parts of the world. i think the key question is, is that because asia managed covid better to date and has done less on the demand-side stimulus. for example, they had relatively stable currencies. these would be reasons to think asian inflation could stay low.
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or is it because asia has not reopened as much and as you do see a broader reopening of the economy, you will have the demand-side pressure showing up in inflation? ? we tend to take a more glass half-full of this. we think inflation will pick up. the forecasts we think our above consensus in the region for inflation next year. having said that, we don't see anything like the kind of acceleration of inflation that we have seen in the u.s.. you mentioned janet yellen's remarks. for a lot of the other emerging-market regions in other parts of the world. we don't think quite that degree of demand-side pressure will be evident in the asia-pacific. so in the u.s., reopening the supply-side might be important. in asia it has been reopened already. shery: andrew tilton, great to have you back. thank you. goldman sachs chief a packet economist there. next, airbus scores the first
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big win at the dubai air show with america order of 255 jets. boeing says it is having progress in getting its jets can air. that is just ahead -- getting its jet back in the air. that is just ahead. don't miss the bloomberg new economic forum happening throughout the week. face-to-face discussions with world leaders on topics ranging from finance, trade to climate. this is bloomberg. ♪
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>> what has happened with the four or five month delay? we have now seen an uptick in demand by significant percentages. not as much as it was prior to the pandemic, but we are now running at 50%, may be a bit more of where we are, and it is growing every day. and cargo is very strong and has been since the pandemic started. it is a good story at the moment. we are looking forward to the next four or five months of good business. >> we see human capital as one of the constraints. we have been working deeply with our supply chain, and will do so as we ramp up. but i would say the number one issue right now is bringing the workforce back into the production of the products.
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shery: high-profile names there speaking to bloomberg on the sidelines of the dubai air show. meanwhile airbus discard the first major win of the event with a big order of 255 new narrowbody jets. let's bring in reed stevenson. how important is this deal? reed: one way to see it is a sign that we are emerging out of this pandemic. so as more people get on planes to fly around the world and the countries, airlines are now looking to basically rebuild or get their fleets back in the air. this air show is pretty much the perfect opportunity for both the likes of airbus and boeing to announce big orders. this is one of the first signs of that from dubai. haidi: we are getting indications that issues with the dreamliner and the 737 will be resolved soon.
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reed: there was some news out of that from the air show, especially with regard to china. if you recall back when the 737 max crashed for the second time, china grounded the fleet within its country within hours. now, the buzz around the air show, we have stan deal, the head of boeing's airplane commercial division saying that they are hopeful that we could see some 737 max aircraft back in the air, and following from that, orders for the short-haul jet. . haidi:. haidi: what are we observing when it comes to any changes in the demand in the way that people fly post-pandemic? and how that translates into the types of aircraft that will be in demand? reed: this is where we get into which aircraft, which major aircraft manufacturer is going
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to be best poised to emerge from the pandemic. the 777 white --wide-body, is one of the favorite models for emirates, which in the global hub dubai, they will be ordering one of those. at the same time, what you see around air shows and from tim clark in particular, is a lot of jockeying. they are trying to bring prices down and get the rest deals. so it seems at the moment they are doing the classic game of playing boeing off of airbus to those ends as they look to get their fleets back up in the air. haidi: reed stevenson, our senior business editor there. we will have plenty more interviews from the airshow.
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we will be hearing from the airbus ceo of airbus on that mega order. and, don't miss the fourth annual bloomberg new economic forum taking place throughout the course of this week. we will be sharing face-to-face discussions in singapore among world leaders on topics ranging from finance to trade to climate, and cities and health. this is bloomberg. ♪
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haidi: a quick check of the latest business flash headlines. singapore pros holdings has ended impact to privatize the company, signing a deal with another consortium. it values the company at just under 2.9 billion dollars and gives shareholders two options, and all cash offer of $2.36 per share, or an offer of $14.40 a share comprising a range of units and cash. a chinese developer says it has raised just under $1 billion with the sale of new shares stake in its property management unit. it also raised $450 million in the form of an interest-free loan from a controlling chairman and shareholder. it is china's fourth biggest pretty company by sales, and its health has been underscored to
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me since september. . this company's earnings topped sales testaments but warned that earnings would decline because of persistent chip shortages. the taiwanese company which is a key iphone assembler, these shortages lasting until the second half of next year. sherry: for years, chinese leaders have been fighting an uphill battle to drive funding for small business now they are counting on beijing's first ever stock exchange to get the job done. joining us is bloomberg's top asia stock editor, lianting tu. how will this new exchange fit into the greater exchanges in the mainland and also hong kong? lianting: it is the intensive lot form. it is different from the other exchanges which is mainly for start ups, and the shanghai one which is for global and more established companies.
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the sme, which smes are a focus area for xi jinping in his common prosperity theme, and he is really promoting this one. it is also the first exchange ever in beijing which is providing additional support for companies in the northern region of china versus the ones in shanghai and the southern regions of shenzen. go ahead? haidi: i was just going to ask, if you were a company that was looking to list on the beijing stock exchange, what are the boxes that you have to tick? lianting: technically, the boards in beijing provide access. the star board in shanghai and the chinext in shenzen. the market cap that is
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going to be for those who want to list in beijing will be a third of a million u.s. dollars, combined with a billion yuan for star board. investors should have at least half a million one in their back account in order to invest in stocks on the beijing stock exchange. . it is the same for the star board, but higher for the chinext companies. today, we are going to see so many companies that will be migrated from opc marketplace, and hopefully they beijing exchange will provide more liquidity for traders and for those companies in terms of fundraising. we will see companies that will debut their today, 10 of them. it is an exciting day for beijing. haidi: do we see much of a boost for china's brokerages? lianting: can you say that
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again? haidi: do we see much of a boost in business for chinese brokerages, then? lianting: it is likely. the brokerages are talking to companies, trying to bring them to the boards. so in a way, the brokerages actually saw a big jump in share price is already leading up to this debut day. so we will be closely watching the prices of brokerages today and see how they are doing on the day. haidi: yen team, our bloomberg asia stocks managing editor in singapore, lianting tu. this ceo says risk management is more important than ever for short-sellers in the era of meme stocks. he sat down with me sen. vitter: to talk about investing in today's environment. -- he sat down today with lisa abramovich to talk about investing in today's environment. >> that good thing from our perspective, or one good thing,
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is that retail traders are allowed. they tell you where they are going. and then let's get back to that whole point that we were discussing about position sizing. we don't run a lot of money in -- by asset management standards. we are, between the two funds, we are not even 250, a little bit less than that. so we are able to get out of the way of most of these things. but when you look at what happened, it was just last week that another short activist came out on a company, i think cassava is the name, the day after the short activist came out, that stock was up 50, 50%. an think it has been up since then. so, yeah, the bottom line is you cannot be large in these positions if you need to get out of the way quickly of the reddit
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crowd and the meme traders. they don't necessarily start with the question, what is a really good company? they sometimes start with the question of, who do we hate? who would be honest by my buying this? so when you are in that and -- who would be punished by my buying this? so when you are in that environment, be small, nimble and manage risk. it has always been about risk management, but never more so than now. lisa: there has also been a huge trend with the discussion about moving into esg and putting money into greener companies, greener types of technology. i think about some electric vehicle companies that have gotten completely pumped up, not just as luck, but rivian, which just ipo'd. this idea that it now has a
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market cap as big or bigger than ford even though it has only delivered a couple of cars. is this a concern, or is just just something specific to the moment, that you don't want to get in on one way or another? carson: we have done some shorting in that space. so i think -- the trick with shorting something like in the e.v. space for a technology that might really have a future and that future could important, is, it is separating the ceos or the founders who actually are going to do something substantive from those who are just total pretenders. haidi: muddy waters research capital chief investment officer carson block. there is so much on the agenda for investors. just about everyone else this week as well, whether you are looking at a huge week when it comes to eco-data, we have china
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domestic activity data out over the course of today. also, central-bank action across southeast asia as well. more retail sales numbers. the inflation debate continues and in the wake of cop26, was it a good deal? but lots of great conversations to take place in singapore, where you are. we just had this really interesting and quite challenging time in the post-pandemic recovery. shery: yeah. of course, a lot to discuss at the new economy forum. really interesting. you mentioned climate change being one of the topics, but remember two years ago when we were in beijing, and the big topic that was also u.s.-china, the rivalry? ? henry kissinger called it being at the foothills of a new cold war. it is again at topic this week. . we have the virtual summit, but tensions seem to have eased a little bit with president biden. so there will be a lot to watch
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out for we have the fourth annual burgundy economy forum happening throughout the week, face-to-face discussions among world leaders on all those diverse topics. that's it for "daybreak: asia." , like, --this is bloomberg. ♪ ♪
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♪ yvonne: it is 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i am yvonne man. we are counting down to the opening of trade in the chinese mainland and hong kong. markets await chinese data that is expected to show the economy's v-shaped recovery is fading. and a chinese developer raises $1 billion through share sales to ease the liquidity crunch. and the last minute intervention by chi

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